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Honeywell Inc. said Thursday it is planning to spin off its $1.3 billion resins and chemicals business into a new standalone company to be named AdvanSix Inc. The new entity will be publicly traded with the deal expected to be completed by early 2017, the defense company said in a statement. The spinoff is expected to be tax-free to Honeywell shareholders. There is no impact to financial guidance at this time, said the statement. The business “is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers,” Chief Executive Dave Cote said in the statement. Shares were not yet active in premarket trade, but are up 10% in the year so far, while the S&P 500 has gained 1%.

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From:: Stock Market News

Monsanto Co. jumped 17% in premarket action on Thursday amid rumors German chemicals giants BASF SE or Bayer AG are mulling a takeover of the St. Louis-based agriculture company. Streetinsider.com said late Wednesday BASF is working with investment banks to advise on a potential takeover of the Roundup maker. Thursday, however, Bloomberg News reported that Bayer is exploring a $40 billion bid for Monsanto. Representatives from BASF and Bayer declined to comment and Monsanto wasn’t immediately available to comment. The takeover speculation comes after Bloomberg reported in March that Monsanto was looking to do possible deals with BASF and Bayer AG . Monsanto was vying to buy Syngenta AG earlier in the year, but the Swiss pesticide and seed company was snapped up by China National Chemical Corp. in a $43 billion deal.

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From:: Stock Market News

The Bank of England on Thursday sounded the alarm that a vote for the U.K. to leave the European Union would hurt the economy and send the pound sharply lower. In its toughest warning yet, the central bank said the “most significant risk” to its economic forecasts concern the so-called Brexit referendum on June 23. “A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy. Households could defer consumption and firms delay investment, lowering labour demand and causing unemployment to rise,” the policy makers said in a statement accompanying its rate decision. The bank kept its key rate at a record low of 0.5% as expected. The BOE also said sterling is likely to depreciate further, “perhaps sharply” in the case of a vote to exit the union. The pound has dropped 9% since its November peak, half of which reflects the risks associated with the referendum, the bank said. “There are increasing signs that uncertainty associated with the EU referendum has begun to weigh on activity,” it said.

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From:: Stock Market News

Kohl’s Corp.’s stock dropped 4.4% in premarket trade Thursday, after the discount department store chain missed first-quarter profit and reported a surprise decline in sales. Earnings for the quarter ended April 30 fell to $58 million, or 31 cents a share, from $127 million, or 63 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 37 cents. Revenue fell 3.7% to $3.97 billion from $4.12 billion, below the FactSet consensus of $4.13 billion. Same-store sales declined 3.9%, compared with the FactSet consensus for a rise of 0.2%. “First quarter sales were challenging,” said Chief Executive Kevin Mansell. “Despite the sales environment, we were able to manage our gross margin and inventory levels consistent with our expectations as we took the markdowns necessary to clear excess inventory.” The stock has tumbled 19% year to date through Wednesday, while the S&P 500 has gained 1%.

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From:: Stock Market News

Nissan Motor Co. on Thursday said it will take a 34% stake in fellow Japanese automaker Mitsubishi Motors Corp. for 237 billion yen ($2.18 billion). The move will make Nissan the biggest shareholder in Mitsubishi, said Carlos Ghosn, chief executive and president of Nissan, in a statement. The two companies, who have had a partnership in place for five years, will cooperate over purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets. Under terms of the deal, Nissan will purchase 506.6 million newly-issued Mitsubishi shares at a price of 468.52 yen per share. Mitsubishi admitted overstating fuel-economy data for certain automobiles in April, and shares have lost around 44% this year. On Thursday, Mitsubishi shares rallied 16% in Tokyo on speculation ahead of the deal, while Nissan shares fell 1.4%.

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From:: Stock Market News